The FOMC statement release supports the US economy. The Federal Reserve’s target is to use its full range of tools to support the U.S. economy in this exigent time thus promoting its employment and price stability goals. The Committee will continuously monitor the implications of incoming information for the economic outlook, which includes the information related to public health, global developments, and inflation pressures, and will use its tools and act to support the economy.

The Federal Reserve displayed the numbers in the meeting forecasting that the US economy would contract to 6.5% this year and unemployment would be 9.3% in December. The interest rate will not be raised until the end of 2022 and inflation will not meet the 2% target.

Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions.

The readiness of the Federal Reserve to offer large-scale overnight and term repurchase agreement operations favors the us economy. Also, The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.

USD/CAD 4 Hours Chart:Support: 1.3338 (S1), 1.3265 (S2), 1.3215 (S3).

Resistance: 1.3460 (R1), 1.3510 (R2), 1.3582 (R3).

All these catalysts have lead to the bullish trend for USD/CAD. Contributing to the strength of the quote may be the weakness in Canada’s main export item of oil.